MTW Demonstration Program Background
The MTW demonstration program encourages MTW agencies to tailor their programs to the needs of their local communities. It allows MTW agencies to design and test innovative, locally-designed housing and self-sufficiency strategies for low-income families by using assistance received under Section 8 (42 U.S.C. 1437f) and Section 9 (42 U.S.C. 1437g) of the Housing Act of 1937 (the 1937 Act) more flexibly. It also permits MTW agencies to streamline administrative procedures to run a more efficient and cost-effective operation by allowing exemptions from certain public housing and Housing Choice Voucher (HCV) program requirements.
Since 1996, PHAs in the MTW demonstration have pioneered innovative policy interventions, many of which have been proven at the local level and subsequently rolled out to the rest of the country’s PHAs. To continue this record of innovation by the existing MTW agencies, HUD intends to balance the flexibility inherent in MTW with the need for measurement, evaluation, and prudent oversight through the MTW Expansion.
The MTW Expansion, authorized with passage of the 2016 Consolidated Appropriations Act (Section 239), allows HUD to expand the MTW demonstration program from 39 agencies by adding an additional 100 agencies over a 7-year period, ending in 2022.
- Designating 100 MTW Expansion agencies
- Setting the term of each MTW Expansion agency’s MTW designation to 20 PHA Fiscal Years
- Requiring agencies to be designated as high-performing at the time of application to the MTW demonstration
- Requiring geographic diversity (considering both the existing 39 MTW agencies and the 100 MTW Expansion agencies)
- Establishing that the size of the agencies, based on aggregate HCV and public housing units at the time of selection, is distributed as follows:
- At least 50 administer 1,000 or fewer units;
- At least 47 administer 1,001-6,000 units;
- At least three administer 6,001-27,000 units;
- None administer more than 27,000 units;
- Stipulating that five agencies have a Rental Assistance Demonstration (RAD) portfolio award that has converted the agency's entire public housing inventory to RAD